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Tanker carrier DHT headed for new deficit

Oslo-based DHT Holdings finished the first quarter with a net deficit of USD 10 million in a weak tanker market that has since deteriorated even further.

Photo: DHT Holdings

Listed tanker carrier DHT Holdings and its fleet of 27 VLCC supertankers achieved an operating profit (EBITDA) of USD 24 million and a net deficit of USD 9.2 million in the first quarter of the year, according to the company's interim report.

The weak tanker market will most likely also weigh down the current quarter, as rates have plunged further – even though the company has booked close to half its fleet at USD 14,200 per day against USD 21,400 per day in the same period last year.

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In a comment on the results, Morgan Stanley writes that VLCC rates are under severe pressure with an average rate of USD 9,300 per day in the Middle East.

DHT Holdings, operated out of Oslo, bolstered its capital base with USD 147 million in the first months of the year through new credit arrangements and ship financing ahead of what looks to be a miserable tanker market throughout 2018.

English Edit: Daniel Logan Berg-Munch

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